From big data to a global rebalancing of power, we identify six social and economic shifts for audit committees to consider.
Audit Committee Bulletin: January 2014
EY launches new book: ”Corporate Fraud: The Human Factor”
Board Matters Quarterly, January 2014
Audit Committee Bulletin: October 2013
Reporting magazine Issue 6 - October 2013
Recruiting for Europe’s boardrooms
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Audit Committee Bulletin: July 2013
BoardMatters Quarterly June 2013
Meeting today’s auditing, financial and reporting challenges
The global business landscape is being reshaped by transformational events and trends. And that means the financial and reporting environment is also being reshaped, resulting in significant challenges for management, boards, audit committees and auditors.
We can help you understand and address today's most critical financial and reporting issues.
- Accounting change
Sweeping changes to accounting standards are coming — are you ready?
You operate in an increasingly uncertain business environment, complicated by the unprecedented range of potential changes to accounting standards. In this environment, management and audit committees are asking what they should be doing today to ready themselves for such significant change.
The IASB and FASB have undertaken a number of ambitious standard-setting projects to improve both IFRS and US generally accepted accounting principles as well as to work to achieve convergence. These new standards, when issued, are expected to significantly alter accounting treatments and disclosures in several critical areas, including financial instruments, leases and revenue recognition. The number of standards being revised is significant, but of greater importance is how the accounting for common transactions will change as a result of these standards.
Fraud, bribery and corruption continue to expose companies to heightened financial, regulatory and reputational risk
Our European fraud survey 2011 reveals a widespread tolerance of unethical behavior that goes to the very top of a business. The results indicate that bribery and corruption is perceived as being widespread across Europe, while few individuals are willing to recognize that it could happen in their own industry sectors. Despite this, respondents to our survey reported that corporate bodies tend to scale down their anti-fraud and anti-bribery efforts precisely in periods when the incentives to act unethically are at their highest.
There is clearly a real need for companies and those charged with their governance and oversight to return their focus to combating fraud, bribery and corruption and implement more robust anti-fraud and anti-corruption efforts. How do you tackle this issue?
- Corporate governance
Increasing transparency, improving control
Increasing transparency, improving control
Pressure from stakeholders and investors, not to mention intense public scrutiny, is placing growing demands on transparency. People want accurate, reliable information about companies, their activities, clients and markets. And they expect to be informed of risks. At the same time, regulators are moving to exert more control.
There is currently much debate about how corporate governance should evolve. It’s a debate that’s being held against a background of legislative and regulatory change, the implementation of International Financial Reporting Standards and increased public scrutiny. We believe that global coordination is a necessity, not a luxury, in today’s interconnected and interdependent markets. Regulators and standard-setters need to continue to work together to promote global convergence efforts.
- Sustainability reporting
A growing trend toward disclosure of non-financial information
An increasing number of organizations are choosing to issue sustainability reports to supplement their financial reporting. This verifiable data helps internal and external stakeholders understand how well the organization adheres to the “triple bottom line” of environmental, social and economic performance. Opting in promotes transparency and confidence. Do you know what makes for successful sustainability reporting?
Seven things you should know about sustainability reporting
- The high number of companies issuing sustainability reports shows that this is a real trend, and not just a fad.
- Whether employees and customers or financial market participants, relevant stakeholders increasingly expect companies to provide sustainability reports. It seems increasingly likely that sustainability reporting will be required by law for certain key topics.
- Sustainability reports can bring operational improvements, strengthen compliance and enhance corporate reputation.
- Reports should be complete and contain key performance indicators (KPIs) that are relevant to the reporter's industry.
- Sustainability reports are examined critically.
- Sustainability reporting presents many challenges, including:
- Data consistency
- Striking a balance between positive and negative information
- Continually improving performanc
- Keeping reports readable and concise
- Sustainability reports can be a valuable communications tool. They can help with cutting costs, efficiency, achieving business imperatives and accountability.
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